Apple will reportedly pay Google $1 billion annually for its Gemini AI model for Siri

Apple strikes a deal with Google to customize it Gemini ai A model to run the next version of his virtual assistant Siri For spring 2026, according to Report dated November 2 by Bloomberg’s Mark Gurman. A later report on Wednesday suggests Apple will do so Paying $1 billion annually This new model contains 1.2 trillion parameters.

Apple has reportedly been evaluating whether to use Google or a competitor for artificial intelligence Anthropic For the next version of Siri. While Apple will pay Google $1 billion annually, it would have cost $1.5 billion annually with Anthropic, according to Another report by Bloomberg.

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This custom Gemini model will run on Apple’s own cloud computer servers. Apple’s own models will continue to run on devices for personal data, while Gemini will run on servers for more complex tasks. Apple does not plan to highlight Google’s involvement in the company’s marketing, Bloomberg reports.

Google declined to comment. Apple and Anthropic did not respond to requests for comment.

Why isn’t Apple building its own AI?

As major tech companies shift toward artificial intelligence, Apple has largely lagged behind. The technology company has been slow to adopt technology and It has not been able to develop competitive AI models. Instead, it turned to companies like OpenAI, the creator of ChatGPT, to do this Helping add generative capabilities On top of current Apple systems.

(Disclosure: Ziff Davis, CNET’s parent company, in April filed a lawsuit against OpenAI, alleging that it infringed Ziff Davis’s copyrights in training and operating its AI systems.)

However, the promise is real agent Apple intelligence failed to materialize, Although it has improved. Apple CEO Tim Cook too He did not rule out the possibility of acquiring a company working in the field of artificial intelligence.

As for the reason why Apple has not made big strides in the field of artificial intelligence despite being one of the richest companies in the world, it likely has to do with prioritization. Apple as a company, Focuses on privacy for its customers. Given how data-intensive AI systems rely on cloud servers, Apple has been more keen on native AI models, ones that can run on the device. The problem is that AI is computationally intensive and smaller, local models cannot compete with server clusters. Training basic models also requires a lot of experience and expense. While OpenAI did not provide exact numbers, Estimates The cost of GPT-5 training has been estimated at more than $1 billion. AI researchers are also highly paid and willing to publish their research publicly. For Apple, partnering with existing AI companies to integrate their technologies aligns better with its culture.

Apple also has a close relationship with Google. Search giant pays Apple 20 billion dollars annually To remain the default search engine on Apple devices. It’s the relationship that makes Apple money and prevents it from building a competitor to Google Search. This is a claim that Apple denies. This arrangement was a key factor in the case brought by the Department of Justice against Google, where A Judge’s ruling That the company was exercising an illegal monopoly.

Despite its lag in the AI ​​space, Apple is doing well financially. And last month it exceeded $4 trillion market capitalization.